shares in this article
indexes in this article
—
FRANKFURT (Dow Jones) – European equity markets are gaining momentum on Thursday afternoon. The economic data of the day surprised positively this time. The DAX is unchanged at 13,220 points, the Euro-Stoxx-50 fell 0.1 percent to 3,663 points. The improvement in German GDP and the Ifo index have a slight support effect: GDP for the second quarter was revised slightly upwards. Instead of the original stagnation, GDP growth is now modest at 0.1 percent. In the United States, GDP was also revised upwards, by 0.6 per cent less than in the previous quarter compared to what was initially reported.
The focus is now on the most important event, the meeting of central bankers in Jackson Hole: the speech by US Federal Reserve Chairman Jerome Powell on Friday is highly anticipated. However, a rise in price data within US GDP (deflator) to plus 8.9 percent has traders worried that Powell is sure to make hawkish comments. As a result, the 10-year US yield rose significantly to 3.12%.
In Europe, the price of gas has meanwhile exceeded the threshold of 300 euros and indicates a cost shock for consumers in the winter. Furthermore, state aid will hardly be possible: in Germany, the Federal Court of Auditors warns that the German state is losing its capacity to act due to financial overload.
Don’t rejoice too soon thanks to the best Ifo index
Investors should therefore not be too happy with the Ifo business climate. At 88.5 points, it was significantly higher than feared in August, but “that doesn’t change the fact that the expectations component offers a devastating outlook for the coming fall and winter months,” LBBW economist Elmar Völker points out. Recent gas price increases e electricity market are not yet fully covered by this survey.
And Jörg Krämer, Commerzbank’s chief economist, mainly suspects that an easing of the shortage of materials is the reason for the better Ifo. The fact that a recession is looming does not change: “Driven by skyrocketing gas prices, inflation is likely to approach 10 percent in the fourth quarter.” Wages, on the other hand, will only increase by up to 3%. The resulting loss of purchasing power is enormous. This explains the rather subdued reaction to the data, as the DAX is clearly back from its daily highs.
Central bankers meeting in Jackson Hole begins
The international focus is on Jackson Hole: the annual central bankers symposium takes place there Thursday through Saturday. Representatives of major central banks have met there since 1982 at the invitation of the US Federal Reserve. Head of the ECB Cristina Lagarde It is not here.
Fed Chairman Jerome Powell’s speech on Friday is eagerly awaited. Ulrich Stephan, investment strategist at Deutsche Bank, assumes, among other things, that Powell will explain how to reach the 2 percent inflation target again. If Powell gives no indication that interest rate hikes will be lower in the future than in the previous two meetings, the euro is likely to come under further pressure.
Fertilizers are becoming increasingly scarce: pharmacies are collapsing
Salesforce’s bearish outlook weighs only slightly on SAP, with shares down 0.9%. However, the rise in the dollar against the euro is having a supportive effect. The previous evening, competitor SAP had lowered the forecast for the current fiscal year.
Hellofresh is down another 2.6%. Staying in the DAX index is in question at the next index review.
Online pharmacies also continue to collapse. The Rose increased by 11% and Shop Apotheke by nearly 5%. There are still concerns about the introduction of e-prescriptions in Germany.
However, the prospect of further fertilizer price hikes is driving K + S by 7% and Yara by 3.3%. The Norwegians had announced that they would further reduce production in Europe due to high gas prices.
Aroundtown shares are down 1.4%. The real estate group increased profits in the first half of the year thanks to the increase in rental income. However, the MDAX-listed company only confirmed its predictions for the full year.
Strong numbers from CRH – Novartis wants to spin off Sandoz
The Irish building materials group CRH has delivered solid economic results. Shares rose 3.2% in London. Above all, Davy’s analysts praised the increase in margins calling it “exceptional” with a plus of 90 basis points. As a result, EBITDA increased 23% more than the market expected.
Novartis gives up 1.4%, although the pharmaceutical company wants to spin off its Sandoz generics and biosimilars division. Sandoz will be listed again as an independent company in Switzerland. However, this step is not unexpected.
===
Latest equity index + / -% absolute + / -% since the beginning of the year
Euro-Stoxx-50 3,662.79 -0.1% -4.67 -14.8%
Stoxx 50 3,649.05 + 0.1% 3.03 -4.4%
DAX 13,229.77 + 0.1% 9.71 -16.7%
MDAX 26,029.60 -0.1% -27.91 -25.9%
TecDAX 3,043.36 + 0.3% 8.21 -22.4%
SDAX 12,234.11 -0.3% -41.76 -25.5%
FTSE 7,477.92 + 0.1% 6.41 + 1.2%
CAC 6,366.62 -0.3% -20.14 -11.0%
Last absolute bond market +/- since the beginning of the year
German ten-year yield 1.34 -0.03 +1.52
US ten-year yield 3.11 +0.01 +1.60
FOREX last +/-% Thu 8:23 Wed 18:21% YTD
EUR / USD 0.9965 -0.0% 1.0012 0.9961 -12.4%
EUR / JPY 136.42 -0.2% 136.91 136.46 + 4.2%
EUR / CHF 0.9610 -0.3% 0.9648 1.0345 -7.4%
EUR / GBP 0.8443 -0.1% 0.8455 0.8446 + 0.5%
USD / JPY 136.91 -0.2% 136.69 137.01 + 18.9%
GBP / USD 1.1801 + 0.1% 1.1842 1.1793 -12.8%
USD / CNH (Offshore) 6.8638 -0.2% 6.8546 6.8760 + 8.0%
Bitcoin
BTC / USD 21,648.09 + 0.3% 21,720.93 21,754.86 -53.2%
GRUDE OIL last settlement VT. +/-% +/- USD% year to date
WTI / Nymex 94.93 94.89 + 0.0% +0.04 + 33.8%
Brent / ICE 101.97 101.22 + 0.7% +0.75 + 36.9%
GAS VT-Settlem. +/- EUR
Dutch TTF 309.10 292.15 + 5.8% +16.95 + 380.2%
METALS last day before +/-% +/- USD% YTD
Gold (Spot) 1,755.05 1,751.39 + 0.2% +3.66 -4.1%
Silver (Spot) 19.13 19.19 -0.3% -0.06 -17.9%
Platinum (Spot) 883.85 880.50 + 0.4% +3.35 -8.9%
Kupfer-Future 3.70 3.64 + 1.4% +0.05 -16.6%
YTD at the close of the day
===
Contact the author: [email protected]
DJG / mod / flf
(END) Dow Jones news
August 25, 2022 10:01 am ET (14:01 GMT)
The leverage must be between 2 and 20
—
No data
—
